Amazon Entering Online Fields Coveted by Google

As mentioned, Google plans to break into the
entertainment market with the Google TV service. The software, which
will run on set-top boxes and other devices, will offer users the
ability to watch television shows, movies, and search the Web. Amazon
won't provide all that, but it will offer an alternative entertainment
platform. And it's entirely possible that if it's successful, hardware
won't be far behind it.

6. Enterprise focus

Amazon might be best known as an e-retailer, but the company is a fine enterprise services provider.
In fact, it delivers cloud storage, Web advertising, and a business
platform for companies that want to sell products on its site.
Meanwhile, Google is continually trying to infiltrate the enterprise
with its own lineup of enterprise Software as a Service offerings,
including Google Apps for Business. It won't be long before the
companies start battling it out more directly in that market. For now,
it seems that Amazon has an attractive slate of online services for
many companies.

7. The hardware business looks appealing

With streaming services coming soon, the Kindle
selling well, and the iPad continuing its growth in the tablet space,
it's not a stretch to say that Amazon will focus more of its efforts on
the hardware market going forward. Since Google offers Android OS and
soon, Chrome OS, the company has a vested interest in seeing its
partners' hardware succeed. With Amazon also competing more in that
space, the market will only become crowded. Thus it could be difficult
for Google to enjoy the kind of success that it hopes to achieve.

8. Advertising

Google is the top Web advertising company in the
world. So far, no other company has even come close to matching the
firm. But Amazon's Clickriver ads service is compelling. The company's
offering allows companies to "match services to products and to content
on Amazon.com and other premium Web sites." It's highly focused. But it
has the potential to be extremely profitable. Google, a company that's
always looking for advertising opportunities, may take issue with that.

9. Size matters

Size matters in the tech space. The big firms do
well, while the small firms need to find areas where they can compete.
Both Google and Amazon are major companies, meaning no firm has an
advantage over the other. Google might be more successful in the
advertising market, but it can't compete with Amazon in retail. And
both firms have vast reserves of cash to expand their operations. In
other words, expect a battle between both of those Web giants.

10. Consumer trust

Consumer trust has helped Google become such a
success so far. People know that when they use a Google product, they
will enjoy an experience that potentially matches or bests the
competition. Aside from Apple, Google hasn't been faced with another
company that enjoys such trust. But it could with Amazon. The online
retailer is a major force in cloud computing resources, it's a key
player in the e-reader market, and it has its sights set on several new
spaces. All the while, consumers trust it.

Don Reisinger is a freelance technology columnist. He started writing about technology for Ziff-Davis' Gearlog.com. Since then, he has written extremely popular columns for CNET.com, Computerworld, InformationWeek, and others. He has appeared numerous times on national television to share his expertise with viewers. You can follow his every move at http://twitter.com/donreisinger.